There seems to be some problem with the email list, so I’ll post today’s update here. Sorry, I’ll try to get the problem resolved.
Today gold finally broke out of its range and breached $1700, which I’ve noted is a critical level. The rally came on the heels of the announcement that the Fed will continue its accommodating monetary policy until at least 2015. Of course this was obvious to all of us, but sometimes the market needs reminders of the situation we’re in.
I would like to see a weekly and monthly close above $1700 before I am confident that the lows are in. If this occurs, we are setting up for a rally into the summer that will probably give us new highs.
Amidst all the media coverage that is undoubtedly coming gold’s way soon, silver will actually be the metal to watch. Since hitting a low of $26 a month ago, silver has rallied over 25%. Keep in mind that silver has yet to make new all-time highs. I believe silver can easily trade at $150-$200 in the years ahead as smaller investors rush to the metal to protect themselves from inflation.
I can’t express enough how the most critical times in recent world history are approaching. For those of us who have seen the writing on the wall, these will be exciting times. Everyone else will be shocked. Things like $3000 gold seemed ludicrous years ago; a couple of years from now it will be fact.
The people who were so vocal in claiming that the gold bubble popped in the last correction have already been silenced. Gold is in a powerful consolidation pattern that will bring with it a rally that will surprise everyone. I’ve said many times that the bearishness I saw in gold at $1530 was just about the worst I’ve ever seen, which is saying a lot. If gold can hold $1700, look for a dramatic rally that will catch most people off guard.Follow